Latest News from Michael Woodhouse

Thank you to Horticulture NZ for the invitation to come and speak to you. It’s fantastic to be here in Blenheim at this wonderful Convention Centre – what a great facility.

I would like to acknowledge Prime Minister Enele S Sopaga of Tuvalu and the Pacific Ministers from Fiji, Kiribati, Samoa and Solomon Islands. It’s nice to see you again.

It’s a big year for the RSE scheme – 10 years since it was first introduced and what a difference it has made. To the horticulture and viticulture industries, to business growth, to Kiwis looking for work, and of course, to the Pacific communities.

As I stand here today, I can’t help but think back to 2007 when the RSE scheme began, with around 65 RSE employers and a national cap of just 5,000. Today, there’s more than 130 RSE employers and the national cap has more than doubled to 10,500.

That growth is a vote of confidence in the scheme. But it shouldn’t come as a surprise that this ground-breaking policy has been such a success.

The RSE scheme has been regarded as one of the best circular migration schemes in the world, and without the dedication and willingness from employers to try something new back in 2007, we wouldn’t be here today celebrating its 10th anniversary.

If we think back to 2007, I’m sure many of you here today will remember all too well the fruit that was left rotting on the ground because of the lack of workers available to do the work.

Not only has the RSE scheme helped prevent that, it’s also led to better quality and more productive workers, as well as a more stable workforce for the horticulture and viticulture industries.

As a result, many businesses have been able to grow and expand. In fact, since 2007, 82 per cent of RSE employers have expanded their cultivation areas, with most agreeing that participation in the RSE scheme was a contributing factor to this expansion.

I’m also aware that participation in the RSE scheme has enabled employers to employ more New Zealand workers in addition to their RSE workers. As you will know, the Government is committed to getting more Kiwis into training, education or employment.

I’m sure Social Development Minister Anne Tolley will talk about that more later today, but let me just say that I’m encouraged by the fact that more than 170 unemployed New Zealanders have so far moved to the horticultural regions and taken part in the New Zealand Seasonal Work Scheme. I want to applaud you as employers for helping make this happen.

When we increased the cap, we also set you a challenge to tell a better story in terms of your recruitment, training and development of Kiwi workers and I’m encouraged to see the progress being made in this respect.

However, after 10 years, we need to be mindful of both the size and the management of the RSE scheme.

I understand the theme of this year’s conference is “Resilient, Sustainable, Ethical” which is very fitting. The 10th anniversary provides the perfect opportunity to celebrate the success of the scheme, as well as focus on what is needed in order to sustain the scheme’s success into the future. And I think the ‘Ethical’ element has an important role to play in that.

While many RSE employers may represent the best of the best in terms of industry standards and employment conditions for their workers, there’s no doubt that there are other employers who are letting the horticulture and viticulture industries down.

This has become particularly evident in Marlborough recently with a number of complaints being made to the Labour Inspectorate about employers not meeting their minimum employment standards obligations.

It is simply unacceptable that those employers who breach employment and/or immigration law are still able to recruit from the international labour market and disadvantage those employers who do the right thing.

That’s why in February this year, the Government announced stand-down periods during which time employers who flout the law will be banned from recruiting further migrant workers.

Since we made those changes, 53 employers have been stood down from recruiting migrant workers. However, I’m pleased to learn that only four of those employers are in the horticulture and viticulture industries.

That, combined with the results of a recent joint agency operation undertaken by Immigration NZ, the Labour Inspectorate and IRD, which found that the level of non-compliance that was uncovered was a considerable improvement on past operations, tells me that we are heading in the right direction as far as compliance goes.

But it’s equally important that RSE employers take responsibility for your supply chain. It’s no longer sufficient to think your responsibilities end with your direct employees.

It is in everyone’s interests to ensure poorer performers in the industry, beyond the RSE scheme, do not jeopardize the success of the scheme. Because that success is important, not just here in New Zealand, but in the Pacific communities as well.

The RSE scheme provides the mainly Pacific workers with an invaluable experience and the chance of being able to send money back to their communities at home.

RSE workers contribute more than $40 million per annum to the Pacific and recent surveys show that many workers are sending 40% of their wages home.

The benefit of this is highlighted in some of the stories from people who take part. Whether it be the Fijian woman who put herself through aviation school to become a pilot through the money she made working in New Zealand, or the Ni-Van worker who now owns rental properties and runs a cattle farm from the money he saved.

While it’s only been 10 years, we’re already hearing that one of the benefits to come out of the scheme is that the children of these workers are being educated. We cannot begin to measure the long-term benefits of outcomes like this.

However, it’s not just the RSE workers that are giving back to the Pacific communities. I’ve heard a number of stories about New Zealand employers going the extra mile for their workers and their villages. I can’t name all of them, but examples include employers such as Birdhurst and Pick Hawke’s Bay, who have sent builders and building supplies in the wake of the destructive hurricanes in Fiji and Vanuatu.

Vinepower’s connection to Ni-Van workers led it to opening an organic coffee and coconut oil business in Vanuatu for RSE workers to have opportunity at home. This shows the strength of the community that has been fostered between New Zealand and the Pacific as a result of the scheme.

So as the RSE scheme continues to grow and we hear more and more stories like these, it’s equally important that we look to the future and the sustainability of the scheme.

The Government is aware that the horticulture and viticulture industries require high volumes of workers for seasonal work in order to continue growing and to increase exports to $10 billion by 2020.

Our decision to increase the national cap to 10,500 in December 2016 shows the Government’s commitment to enabling the industry to continue to grow and maximise export returns, while ensuring New Zealanders also benefit from this growth.

With the number of RSE workers and employers both increasing, we have also seen a recent rise in the number of incidents involving RSE workers which has resulted in some negative publicity.

While these incidents are small when you look at the total number of workers arriving each year, which is equivalent to a town the size of Greymouth or Gore, there have already been over 40 incidents this year – more than the total number for last year and we are only at the 6 month mark.

I know that Immigration officials work with a number of key parties including employers, police and the community to investigate and follow up any incident as quickly as practicable. They also have a zero tolerance for the misbehaviour of workers and any who are found to have breached the conditions of their visas are usually returned home within a matter of days.

Education and information at the start of the process is absolutely vital. Preparing the RSE workers and educating them on their responsibilities for working in New Zealand is the most effective way to ensure they understand the importance of good behaviour and the repercussions of misconduct.

As you know, workers are already provided with a wealth of information before they leave home and on arrival in New Zealand, and an induction programme has also now been developed for RSE workers coming here.

But it’s clear more needs to be done to ensure the message gets home. I know that INZ has contacted all RSE employers to emphasise the importance of pastoral care and ensuring their workers behave appropriately.

The same message has been given to the Governments of RSE-sending countries. I’m reassured by the measures many of them have already put in place such as the Fijian Government’s recent announcement banning workers who damage the country’s reputation from further seasonal work opportunities for four years.

It’s crucial that we all take responsibility for the roles we play to ensure the sustainability of the RSE scheme. The scheme is a fantastic eco-system and is a credit to the strong relationships that have been built between employers, workers, government officials and our Pacific neighbours.

I look forward to seeing the continued to success of the RSE scheme for many years to come

Finance Minister Steven Joyce and ACC Minister Michael Woodhouse have today announced the sale of FairWay Resolution from Crown ownership to employee ownership with effect from July this year.

“Employee-ownership is a successful business model that will give staff a greater role in the future direction of the company,” Mr Joyce says.

“The change in ownership will also reflect positively in the way staff work, which has a direct flow on for clients.”

Fairway started in 1999 as the Dispute Resolution Service within ACC before becoming an independent Crown entity in 2011, and is New Zealand’s largest specialist conflict management company with a team of over 200 people throughout New Zealand.

“An independent review of the ACC dispute resolution process in 2016 found that Crown ownership affected clients’ perceptions of FairWay’s independence and the report cited change of ownership as a possible solution,” Mr Woodhouse says.

“With today’s announcement, any doubts that clients may have had about the complete independence of FairWay can be laid to rest.”

Independent advice was relied upon to identify and assess appropriate options for the long-term ownership of the company with the employee ownership model best for the crown and company. The agreed purchase price was $6.5 million

The Government has today announced $10 million in new funding to expand Pacific labour mobility, as the Recognised Seasonal Employer (RSE) scheme celebrates ten years of success.

Foreign Minister Gerry Brownlee and Immigration Minister Michael Woodhouse say the RSE scheme is an innovative immigration policy that fulfils a labour need in New Zealand while giving Pacific workers the chance to earn an income and gain skills.

“Due to the scheme’s success, the Government has approved $10 million over an initial five-year period to explore what other sectors of the economy – where there is continued high demand for labour – RSE workers are well placed to make a contribution to,” Mr Brownlee says.

“In particular, the Government will be exploring employment opportunities for Pacific women and develop prospects in semi-skilled, higher-income occupations.

“The new funding is in addition to $5 million for the training of Pacific workers in New Zealand and forms a significant component of the recently-signed Pacific Agreement on Closer Economic Relations Plus,” Mr Brownlee says.

Mr Woodhouse says 10 years on, the scheme is still regarded as ground-breaking and among the most effective development policies in the world.

“During its 10 years, the RSE scheme has more than doubled from 5,000 seasonal workers in 2007, to 10,500 in 2017, and has played a key role in supporting industry growth in New Zealand’s horticulture and viticulture sectors,” Mr Woodhouse says.

“It has also played an integral role in supporting economic growth, with RSE workers contributing more than $40 million every year to the Pacific.

“At the heart of the scheme’s success are the strong relationships that have been forged over the last decade with government and industry, and with the highly valued Pacific workers who are welcomed into our communities each year,” Mr Woodhouse says.

The Ministry of Foreign Affairs and Trade and the Ministry of Business, Innovation and Employment partner on the delivery of the RSE scheme.

Attorney-General Christopher Finlayson and Immigration Minister Michael Woodhouse were in Ottawa, Canada this week to attend the annual Five Country Ministerial.

The Five Country Ministerial brings together Interior Ministers, Immigration Ministers and Attorneys General from the United States, Canada, the United Kingdom, Australia and New Zealand to discuss a range of common national security issues and identify areas for collaboration. This year topics included counter-terrorism, cyber-security and border security.

“At a time when global terror threats are heightened, these meetings are an opportunity to share intelligence and ideas with our Five Country colleagues, particularly in relation to border security issues and the general movement of people.”

While in Ottawa, Mr Finlayson also attended the Attorneys General Quintet, now in its eighth year. The Quintet brings together the Attorneys General of the same five countries to share approaches to a range of complex and trans-border legal issues.

This year’s meeting included a session led by New Zealand to discuss current legal frameworks for intelligence and evidence in legal proceedings.

“Our countries are dealing with a number of common issues, many of them with cross-border aspects,” Mr Finlayson says.

“These meetings provide a valuable opportunity to work with jurisdictions similar to our own on difficult challenges posed to security, law enforcement and the courts.”

Border sector Ministers have welcomed a new report by the Office of the Auditor-General published today on the use of information at New Zealand’s ports, and say their agencies will continue to work closely to protect our borders.

“This is a positive report which recognises good collaboration between the three border agencies. It finds there are strong relationships and effective processing of passengers,” says Immigration Minister Michael Woodhouse.

“The agencies are already working on the report’s recommendations, including briefings for new staff on the different agencies’ roles and for an updated Border Sector strategy.”

“Biosecurity is my number one priority as Minister so it is pleasing to see another good report card. This follows a positive Office of the Auditor General report in 2015 showing the Ministry for Primary Industries (MPI) has made very good progress in biosecurity responses and preparedness.

“In this year’s Budget we boosted biosecurity funding to nearly a quarter of a billion dollars. This has helped MPI employ 50 new biosecurity staff and 20 extra biosecurity detector dog teams, along with new x-ray machines, a border clearance levy and the Biosecurity 2025 Direction Statement.”

Customs Minister Tim Macindoe says it is pleasing to see Customs and MPI staff are working together effectively.

“Initial scoping is underway between Customs and MPI to look at opportunities for joint Border Sector training and recruitment. This will help to improve awareness of and understanding between frontline staff at the two agencies.”

World Refugee Day is an opportunity to celebrate the strength, courage and tenacity of refugees around the world and acknowledge the contribution they make here in New Zealand, says Immigration Minister Michael Woodhouse.

“It’s important we take the time to recognise the difficult journey refugees have been on and the obstacles they have, and continue to, overcome,” says Mr Woodhouse.

“The Government takes our responsibility to provide protection to refugees extremely seriously which is why last year we announced an increase to the annual refugee quota by a third to 1,000 from 2018/19.

“We are also committed to improving resettlement outcomes for the refugees we do take, which is why we introduced the Refugee Resettlement Strategy in 2012.

The Strategy aims to help refugees adapt to life in New Zealand as quickly as possible and support them to achieve better settlement outcomes and recent data shows it’s working.

“More school leavers with a refugee background with five years or more in the New Zealand education system are gaining NCEA Level 2 and more refugee children are also receiving age-appropriate immunization, with 85 per cent of refugee children receiving one or more scheduled vaccinations within six months of their arrival in New Zealand.

“World Refugee Day is also a time to pay tribute to the scores of volunteers and organisations that play such a vital part in helping refugees feel welcome in their new communities and ensuring they have access to everything they need.

I am always encouraged by the number of volunteers and organisations involved in helping refugees adapt to life here in New Zealand and I have no doubt they will be integral to the success of the community sponsorship category pilot next year.”

ACC Minister Michael Woodhouse today announced a new appointment to the ACC Board.

Leona Murphy joins the board from today for a three year term.

“Ms Murphy will bring valuable skills to the ACC board, she has a strong background in large scale business transformation, digital IT and insurance claims management,” Mr Woodhouse says.

Ms Murphy’s career has been in the Australian insurance industry and most recently as Chief Strategy Officer and Chief Transformation Officer at IAG where she worked across Australia, Asia and New Zealand markets.

ACC is a Crown agent and has an independent board with eight members appointed by the Minister for ACC.

Note for editors:

Leona Murphy:

Ms Murphy who is based in Australia has a background in the Australian insurance industry, most recently as Chief Strategy and Transformation Officer at IAG. She is a director of Liberty Financial Limited, Stone & Chalk Ltd and Chair of the Royal Brisbane & Women’s Hospital Foundation.

She was previously Chair of the Board for the United Nations Environmental Programme (UNEP) Finance Initiative’s Principles for Sustainable Insurance.

ACC and Workplace Relations and Safety Minister Michael Woodhouse today announced a new Workplace Health and Safety Performance Improvement Toolkit (the Toolkit) to provide businesses with advice and guidance to improve health and safety performance.

“The Toolkit delivers a framework that defines what good health and safety looks like and encourages active involvement and engagement throughout the workplace, from workers and operational managers through to senior leaders and boards,” Mr Woodhouse says.

“The Toolkit delivers a health and safety best practice standard that is nationally recognised, credible and aligned with the New Zealand regulatory framework beyond minimum compliance requirements.

“Businesses will be able to choose how the Toolkit best caters to their needs with access to resources on the WorkSafe website, an onsite assessment delivered by independent accredited assessors or a free online self-assessment.”

The Toolkit will help improve workplace health and safety by:

aligning health and safety workforce professional development with best practice
supporting behavioural and culture change by fostering more effective worker participation and engagement
targeting system weaknesses identified by the Independent Taskforce

“Good health and safety is good for business and leads to a more productive workforce,” Mr Woodhouse says.

“The Toolkit has an important role to play in this and is another step towards achieving the government’s target of a 25 per cent reduction in workplace fatalities and serious injuries by 2020.”

The Toolkit is the culmination of the Safety Star Rating Scheme work undertaken by WorkSafe, ACC and the Ministry of Business, Innovation and Employment.

Budget 2017 provides $36.3 million of additional operating spending over the next four years for WorkSafe New Zealand to build its capability as an effective, risk-targeted regulator, says Workplace Relations and Safety Minister Michael Woodhouse.

$17.36 million has been reprioritised from within baseline and the remaining $18.97 million is new funding from the Health and Safety at Work Levy.

“Budget 2017 recognises the work required to lift health and safety performance in the workplace,” Mr Woodhouse says.

The $36.3 million over four years will allow WorkSafe to:

maintain the High Hazard Unit’s current inspectorate capability and capacity, enabling it to carry out both proactive and reactive activity to support business to manage catastrophic risk.
continue to provide effective education, engagement and enforcement activity to manage health and safety issues around the high levels of construction activity in Christchurch and Auckland
address operating cost pressures, ensuring WorkSafe can maintain an active presence across New Zealand.

“Budget 2017 also addresses higher regional inspectorate costs by providing WorkSafe with the necessary funding to maintain its local engagement.

“This will allow businesses and workers facing wide-ranging risks to continue to get support from their local WorkSafe office.

“WorkSafe has become a smarter, more targeted regulator and Budget 2017 will help maintain the progress WorkSafe’s been making in improving our workplace health and safety record.”

Budget 2017 provides $8.7 million of operating funding over the next four years for initiatives to support pay equity dispute resolution and Holidays Act compliance, Workplace Relations and Safety Minister Michael Woodhouse says.

“The Government is committed to achieving pay equity in New Zealand and ensuring we have the resources to settle pay equity claims in a timely manner,” Mr Woodhouse says.

The $8.7 million is made up of $6.7 million of new funding and $2 million reprioritised from existing baselines.

“Prompt and effective mediation for pay equity cases will benefit employers and employees by reducing time and costs associated with protracted employment disputes, leading to more productive employment relationships.

“Budget 2017 also supports the effective delivery of the Holidays Act compliance strategy by providing $3.4 million to the Labour Inspectorate.

“The strategy benefits employees by ensuring remediation of historical underpayment for holidays and leave, as well as correct payment in the future,” Mr Woodhouse says.

“The additional funding allows the Labour Inspectorate to continue this important work alongside its other regulatory activities to ensure our employment law is being applied fairly and consistently.”